BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 398


                                                                    Page  1





          Date of Hearing:  July 13, 2015 


                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES


                                 Das Williams, Chair


          SB  
          398 (Leyva) - As Amended June 2, 2015


          SENATE VOTE:  31-9


          SUBJECT:  Green Assistance Program.


          SUMMARY:  Establishes the Green Assistance Program (GAP) to be  
          administered by the Secretary for Environmental Protection  
          (Secretary) in concert with environmental justice programs.


          EXISTING LAW, under the California Global Warming Solutions Act  
          of 2006 (AB 32):


          1)Requires the Air Resources Board (ARB) to adopt a statewide  
            GHG emissions limit equivalent to 1990 levels by 2020 and  
            adopt regulations to achieve maximum technologically feasible  
            and cost-effective GHG emission reductions.

          2)Establishes the Greenhouse Gas Reduction Fund (GGRF); requires  
            that all funds, except for fines and penalties, collected  
            pursuant to a market-based mechanism be deposited in the fund;  
            and requires the Department of Finance, in consultation with  
            ARB and any other relevant state agency, to develop a  
            three-year investment plan for the GGRF.  








                                                                     SB 398


                                                                    Page  2






          3)Requires that the GGRF be used to facilitate the achievement  
            of GHG emissions reductions in the state consistent with AB 32  
            and the investment plan.  

          4)Requires the investment plan to allocate a minimum of 25% of  
            the funds to projects that benefit disadvantaged communities  
            and to allocate 10% of the funds to projects located within  
            disadvantaged communities.  

          5)Requires ARB, in consultation with the California  
            Environmental Protection Agency (CalEPA), to develop funding  
            guidelines for administering agencies receiving allocations of  
            the GGRF that include a component for how agencies should  
            maximize benefits to disadvantaged communities.  

          THIS BILL: 


          1)Establishes GAP, and requires the Secretary to administer the  
            program in concert with environmental justice programs.



          2)Requires GAP to provide technical assistance to small  
            businesses and small nonprofits, as defined by the Secretary,  
            and disadvantaged communities applying funding from the GGRF.   
            The technical assistance may include:



             a)   Basic information on available programs, eligibility  
               requirements, and deadlines; and,

             b)   Referrals to designated contact people in agencies  
               administering the programs. 











                                                                     SB 398


                                                                    Page  3





          3)Requires the Secretary to conduct outreach activities to  
            inform eligible entities about the GAP.  Authorizes the  
            Secretary to coordinate outreach activities with other state  
            agencies, local agencies, and nonprofits.

          4)Requires that GAP use existing resources appropriated by the  
            Legislature in the annual Budget Act.



          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, this bill creates cost pressures in the hundreds of  
          thousands to low millions of dollars from the General Fund or  
          the GGRF to CalEPA for technical assistance and outreach.


          COMMENTS:  


          1)This bill.  According to the author: 


               Currently, there is no single place for small communities  
               and businesses to turn to for assistance in accessing funds  
               for mitigating the impacts of poor air quality.  Housed at  
               CalEPA, the GAP will provide small communities and  
               businesses with information on all of the funding available  
               and assistance on how to apply for funding at various  
               agencies.  As more funding becomes available, the state  
               must ensure that every city and business has the same  
               ability to participate in creating healthier neighborhoods.  



          2)AB 32.  As part of AB 32's direction that ARB adopt a  
            statewide GHG emissions limit equivalent to 1990 levels by  
            2020 and adopt regulations to achieve maximum technologically  
            feasible and cost-effective GHG emission reductions, AB 32  
            requires ARB to prepare and approve a Scoping Plan at  








                                                                     SB 398


                                                                    Page  4





            five-year intervals.  



          The first Scoping Plan, adopted by ARB in 2008, described the  
            specific actions ARB and others must take to reduce statewide  
            GHG emissions to 1990 levels by 2020.  Pursuant to AB 32, the  
            reduction measures identified in the Scoping Plan had to be  
            proposed, reviewed, and adopted as individual regulations by  
            January 1, 2011, to become operative beginning on January 1,  
            2012.  According to ARB, a total reduction of 80 million  
            metric tons (MMT), or 16% compared to business as usual, is  
            necessary to achieve the 2020 limit.  Approximately 78% of the  
            reductions will be achieved through identified direct  
            regulations.  ARB intends to achieve the balance of reductions  
            necessary to meet the 2020 limit (approximately 18 MMT)  
            through a cap-and-trade program that covers an estimated 600  
            entities.  

          In May 2014, ARB adopted a Scoping Plan update.  The Scoping  
            Plan update discusses the objective of achieving an 80%  
            reduction by 2050 and the need for a midterm target, but does  
            not propose or adopt a specific target.  According to ARB, the  
            update defines ARB's climate change priorities for the next  
            five years and sets the groundwork to reach California's  
            long-term climate goals.

          The 2014-15 Budget Act allocates cap-and-trade revenues for the  
            2014-15 Fiscal Year and establishes a long-term plan for the  
            allocation of cap-and-trade revenues beginning in Fiscal Year  
            2015-16.  The Budget continuously appropriates 35% of  
            cap-and-trade funds for investments in transit, affordable  
            housing, and sustainable communities.  Twenty-five percent of  
            the revenues are continuously appropriated to continue the  
            construction of high-speed rail.  The remaining 40% will be  
            appropriated annually by the Legislature for investments in  
            programs that include low-carbon transportation, energy  
            efficiency and renewable energy, and natural resources and  
            waste diversion.  In addition to reducing GHG emissions, 25%  








                                                                     SB 398


                                                                    Page  5





            of the proceeds from the GGRF must also go to projects that  
            provide a benefit to disadvantaged communities, as identified  
            by the California Environmental Protection Agency (CalEPA).  A  
            minimum of 10% of the funds must be for projects located  
            within those communities.  

          In his January 5, 2015 Inaugural Address, Governor Brown  
            announced the following objectives:  1) Increase the amount of  
            renewable energy used in California from 33% to 50%;  2)  
            Reduce petroleum use in cars and trucks by up to 50%; and,  3)  
            Double the efficiency of existing buildings and make heating  
            fuels cleaner.
          3)Disadvantaged communities.  In October 2014, CalEPA released  
            its list of disadvantaged communities based on the California  
            Communities Environmental Health Screening Tool  
            (CalEnviroScreen), a tool that assesses all census tracts in  
            California to identify the areas disproportionately burdened  
            by and vulnerable to multiple sources of pollution.  Areas  
            identified as disadvantaged by CalEnviroScreen 2.0 include the  
            majority of the San Joaquin Valley; much of Los Angeles and  
            the Inland Empire; pockets of other communities near ports,  
            freeways, and major industrial facilities such as refineries  
            and power plants; and large swaths of the Coachella Valley,  
            Imperial Valley and Mojave Desert.



          Each of the programs administering funds from the GGRF have  
            separate guidelines and grant proposal request documents on  
            their respective websites.  Eligibility criteria and  
            application processes vary, as do recommendations about  
            working with the administering agency to develop proposals or  
            applications.  For those small organizations and disadvantaged  
            communities lacking experience in this area, assistance such  
            as that proposed by this bill may help them successfully apply  
            for and utilize the funding available.  
          REGISTERED SUPPORT / OPPOSITION:










                                                                     SB 398


                                                                    Page  6







          Support


          American Lung Association in California


          Asian Pacific Environmental Network


          Breathe California


          California Bicycle Coalition


          California Environmental Justice Alliance


          California League of Conservation Voters


          Clean Water Action


          Climate Resolve


          Coalition for Clean Air


          Environmental Defense Fund


          Leadership Counsel for Justice and Accountability


          Lutheran Office of Public Policy, California








                                                                     SB 398


                                                                    Page  7







          Move LA


          National Resource Defense Council


          Physicians for Social Responsibility


          ReLeaf


          Sierra Club California


          Strategic Concepts in Organizing and Policy Education


          Trust for Public Lands


          Union of Concerned Scientists


          Valley Clean Air




          Opposition


          None on file












                                                                     SB 398


                                                                    Page  8





          Analysis Prepared by:Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092